The UK Bribery Act 2010 is one of the toughest anti-corruption laws in the world. It applies to all businesses that operate in, from, or with ties to the UK — including overseas companies carrying out business in the UK.
Failure to comply can lead to significant penalties, criminal charges, and reputational damage.
The Bribery Act 2010 makes it a criminal offence to:
Offer, promise, or give a bribe
Request, agree to receive, or accept a bribe
Fail to prevent bribery by persons associated with your organisation
A bribe can include money, gifts, hospitality, favours, or any advantage intended to influence a business decision.
The Act applies to:
UK companies and partnerships
UK branches of overseas businesses
Individuals acting on behalf of a business
Any organisation carrying on a business or part of a business in the UK
This means even small or domestic-focused companies must comply if they conduct business in the UK or with UK entities.
Offering or giving a financial or other advantage to influence a person’s actions in business.
Requesting or accepting a bribe in exchange for influencing a business decision.
Giving or offering a bribe to a foreign public official to obtain or retain business.
A unique “strict liability” offence —
A commercial organisation is guilty if someone associated with it bribes another person to obtain or retain business for the organisation, unless it can demonstrate it had adequate procedures in place to prevent bribery.
Associated persons can include:
Employees
Agents
Consultants or intermediaries
Subsidiaries and contractors acting on the business’s behalf
The behaviour of these people can create liability for the business if there are no adequate controls in place.
To avoid liability under the “failure to prevent bribery” offence, businesses must design and implement proportionate anti-bribery procedures. These typically include:
Identifying areas of the business that are most susceptible to bribery risks.
A formal anti-bribery policy that sets out expected behaviour and what constitutes a bribe.
Regular training for staff and associated persons to ensure they understand the policy and how to apply it.
Checks on partners, agents, and suppliers before engagement to identify potential risk indicators.
Ongoing monitoring of compliance and periodic review of controls and procedures.
Not all gifts or hospitality fall foul of the Bribery Act. However, businesses should ensure that:
Any gifts or hospitality are proportionate and transparent
There is a clear business purpose
They are recorded accurately
They comply with written policy thresholds
Excessive or secretive gifts and hospitality can easily be construed as bribery.
Penalties for breaches of the Bribery Act are severe and may include:
Unlimited financial penalties for companies
Imprisonment for individuals
Professional disqualification for directors
Reputational damage and loss of business opportunities
Because penalties can affect both the individual and the organisation, prevention and compliance are crucial.
The Bribery Act 2010 should not be an afterthought in your business planning. A proactive approach helps protect your organisation, your people, and your reputation.
Applegrow Financial Advisors can assist you with:
Identifying bribery and corruption risks in your business
Developing a tailored anti-bribery policy
Implementing effective control procedures
Providing training and support for staff
Reviewing third-party arrangements and due diligence processes
Whether you are a small start-up or an established enterprise, Applegrow can help you build robust anti-bribery procedures that keep your business compliant and resilient.
A capital gain arises when a chargeable asset is sold for more than its original cost. The gain is calculated as:
Sale proceeds (less selling costs)
minus
Purchase price (including acquisition costs)
CGT applies to assets such as shares, business assets, investment property, and certain personal possessions.
For the 2025/26 tax year, CGT rates depend on your total taxable income and gains:
18% on gains that fall within the basic rate income tax band
24% on gains above the basic rate band
These rates apply to most assets, subject to specific exceptions and reliefs.
Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) can significantly reduce CGT on qualifying business disposals.
For 2025/26:
Qualifying gains are taxed at an effective rate of 14%
The lifetime limit for BADR is £1 million
The rate will increase to 18% from 2026/27
BADR may apply to:
The sale of a sole trade or partnership business
Shares in a personal trading company
Assets used in a business that has ceased within the last three years
Associated disposals (such as personally owned property used in a business) may also qualify, although restrictions can apply, particularly where rent has been charged.
To qualify for BADR on company shares:
You must have been an employee or director
You must hold at least 5% of ordinary share capital
You must hold at least 5% of voting rights
Additional distribution or proceeds tests must be met
The qualifying ownership period is two years leading up to the date of disposal.
Where a shareholder’s holding falls below 5% due to fundraising through new share issues, BADR may still be protected. An election can be made to crystallise the gain before dilution, with the option to defer tax until the shares are actually sold.
This area requires careful planning.
Investors’ Relief is designed for external investors in unlisted trading companies.
Key conditions include:
Shares must be newly issued for cash
The company must be unlisted and trading
Shares must be held for at least three years
The CGT rate under Investors’ Relief is:
14% for 2025/26
Increasing to 18% from 2026/27
The lifetime limit for IR is £1 million.
Each individual can realise gains up to the £3,000 annual exemption (2025/26) without paying CGT. Couples should consider planning disposals jointly to maximise the use of both exemptions.
Shares of the same class in the same company are treated as one pooled asset. However:
Same-day transactions are matched first
Purchases within 30 days after disposal are matched next
Remaining shares are matched from the pooled holding
These rules are designed to prevent short-term tax planning.
Additional reliefs may include:
Private Residence Relief
Business Asset Rollover Relief
Gift Holdover Relief
Offset of carried-forward capital losses
Some disposals, such as those involving EIS, VCTs, or share exchanges, can be complex and should be reviewed in advance.
Capital gains tax planning should always be done before an asset is sold. Early advice can significantly reduce tax exposure and avoid unexpected liabilities.
Applegrow can help you:
Identify available CGT reliefs
Plan business or investment disposals
Structure transactions tax-efficiently
Ensure compliance with current legislation
Ensure your business is protected from bribery risk — get expert advice from Applegrow today.
